Partly allowed

Asset Reconstruction Company (India) Ltd. v. Manyata Developers Pvt. Ltd.

Karnataka HC23 Jun 2023COMAP/70/2022

Case brief

AI extract

What is this about?

The High Court of Karnataka disposed of two commercial appeals. It held a dispute was not arbitrable, allowing the appeal filed by an Asset Reconstruction Company and setting aside the lower court order. Conversely, it dismissed a separate appeal filed by a developer.

What did the court decide?

Allowed COMAP No.70/2022, set aside order in COMM.A.A.No.201/2021; dismissed COMAP No.219/2023.

Asset Reconstruction Company (India) Ltd. Vs Manyata… — Arbitration | Karnataka HC (2023)

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 23^RD DAY OF JUNE, 2023

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PRESENT

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THE HON'BLE MR. JUSTICE ALOK ARADHE

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AND

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THE HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE

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COMAP NO.70 OF 2022

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C/W

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COMAP NO.219 OF 2023

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IN COMAP NO 70 OF 2022

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BETWEEN:

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ASSET RECONSTRUCTION COMPANY (INDIA) LTD. A COMPANY INCORPORATED UNDER

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THE COMPANIES ACT 1956

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HAVING ITS REGISTERED OFFICE AT THE RUBY, 10TH FLOOR, 29 SENAPATI BAPAT MARG, DADAR (WEST) MUMBAI, MAHARASHTRA -400028 REP. BY ITS AUTHORISED SIGNATORY MR. SHIVSHANKAR U.B.

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...APPELLANT

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(BY MR. V. SRINIVASA RAGHAVAN, SR. COUNSEL FOR MS. SAHANA DEVANATHAN A/W MR. CHAITANYA SHARMA, ADVS.,)

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AND:

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1 . MANYATA DEVELOPERS PVT. LTD. A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT 1956 HAVING ITS REGISTERED OFFICE AT NO.9/1 2ND FLOOR, CLASSIC COURT RICHMOND ROAD, BENGALURU

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KARNATAKA-560025 REP. BY ITS AUTHORISED SIGNATORY.

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…RESPONDENT

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(BY SRI. S.M. CHANDRASHEKAR, SR. COUNSEL FOR SRI. CHANDRASHEKAR PATIL, ADV.,)

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THIS COMAP/COMMERCIAL APPEAL IS FILED UNDER SECTION 13(1) OF THE COMMERCIAL COURTS, COMMERCIAL DIVISION AND COMMERCIAL APPELLATE DIVISION OF HIGH COURTS ACT, 2015 R/W SECTION 37(1)(B) OF THE ARBITRATION AND CONCILIATION ACT, 1996, PRAYING TO CALL FOR LOWER COURT RECORDS IN COMM.A.A.NO.201/2021, FILED BEFORE THE HON'BLE COURT OF THE LXXXV ADDL. CITY CIVIL AND SESSIONS JUDGE AT BENGALURU. (C.C.H.86). ALLOW THE PRESENT APPEAL. CONSEQUENTLY, SET ASIDE THE ORDER DATED 15/12/2021 PASSED BY THE HON'BLE COURT OF THE LXXXV ADDL. CITY CIVIL AND SESSIONS JUDGE AT BENGALURU IN COMM.A.A.NO.201/2021 (ANNEXURE-A) & ETC.

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IN COMAP NO.219 OF 2023

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BETWEEN:

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MANYATA DEVELOPERS PRIVATE LIMITED CIN U45201KA2008PTC047296 A COMPANY REGISTERED UNDER THE COMPANIES ACT 1956 HAVING ITS REGISTERED OFFICE AT NO.9/1, 1ST FLOOR, CLASSIC COURT RICHMOND ROAD, BANGALORE 560025 REPRESENTED BY ITS DIRECTOR MR. REDDY VEERANNA.

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...APPELLANT

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(BY SRI. S.M. CHANDRASHEKAR, SR. COUNSEL FOR SRI. CHANDRASHEKAR PATIL, ADV.,)

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AND:

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1 . ARCIL-AST-IX TRUST REPRESENTED THROUGH ITS TRUSTEE.

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(A) ASSET RECONSTRUCTION COMPANY (INDIA) LIMITED HAVING OFFICE AT THE RUDY 10TH FLOOR, 29, SENAPTHI BAPAT MARG DADAR (WEST), MUMBAI-400028.

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(B) L AND T FINANCE LTD. HAVING OFFICE AT TECHNOPOLIS 7TH FLOOR, A WING, PLOT NO. 7 BLOCK/BP SECTOR, SALT LAKE KOLKATTA, WEST BENGAL -70009.

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…RESPONDENTS

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(BY SRI/SMT. MANEESHA KONGOVI, ADV., FOR C/R)

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THIS COMMERCIAL APPEAL/COMAP IS FILED UNDER SECTION 13(1) OF THE COMMERCIAL COURTS, COMMERCIAL DIVISION AND COMMERCIAL APPELLATE DIVISION OF HIGH COURTS ACT, 2015 READ WITH SECTION 37(1)(B) OF THE ARBITRATION AND CONCILIATION ACT, 1996, PRAYING TO ALLOW THE PRESENT APPEAL AND CONSEQUENTLY SET ASIDE IMPUGNED ORDER DATED 21ST APRIL, 2023 PASSED BY THE LXXXV ADDL. CITY CIVIL AND SESSIONS JUDGE, BENGALURU (COMMERCIAL COURT CCH 86) IN COM.A.A. NO.183 OF 2023 AND. RESTRAIN THE RESPONDENT ITS OFFICER, AGENTS, REPRESENTATIVES, ASSIGNS, IN PURSUANCE OF THE PROCEEDINGS INITIATED BY IT FOR RECOVERY OF THE ALLEGED AMOUNT UNDER DEFAULT UNDER THE LOAN FACILITIES AVAILED BY THE APPELLANT HEREIN FROM THE ORIGINAL LENDER AND ANY OTHER ORDERS OR DIRECTIONS THAT THIS HONBLE COURT DEEMS FIT IN THE FACTS AND CIRCUMSTANCES OF THE PRESENT CASE.

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THESE APPEALS HAVING BEEN HEARD AND RESERVED FOR JUDGMENT ON 19.06.2023, COMING ON FOR PRONOUNCEMENT OF JUDGMENT THIS DAY, ALOK ARADHE J., DELIVERED THE FOLLOWING:

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JUDGMENT

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By a separate order passed today in CMP

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No.110/2022 and CMP NO.540/2022, we have

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held that the dispute between the parties is not arbitrable. Therefore, COMAP No.70/2022 filed by Asset Reconstruction Company India Limited is allowed and the order dated 15.12.2021 passed in COM. AA No.201/2021 is set aside. The COMAP No.219/2023 filed by the Manyata Developers Private Limited is dismissed.

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Sd/JUDGE

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Sd/JUDGE

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Asset Reconstruction Company (India) Ltd. v. Manyata Developers Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Asset Reconstruction Company (India) Ltd. v. Manyata Developers Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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